Pi Network is the latest cryptocurrency to make waves in the mining world, and it looks set to stay. Crypto and blockchain currencies are cementing themselves more and more as legitimate, viable ways to invest and trade, and Pi Network is being praised as an innovative, user-friendly approach to digital assets.
Pi Network is a rising star among cryptocurrencies
The aspects of Pi Network that appear to be catching attention are its user-friendly experience and accessibility to all miners across the board at all levels of experience. New buyers, in, particular, seem to gain confidence from the way they interact with their Pi crypto accounts. Historically, other cryptocurrencies have been intimidating and complicated to track and trade with, turning many potential buyers off when looking to dip their toe in the crypto market.
Pi’s potential hasn’t been uncovered yet, but considering the early interest, especially from new traders and network builders, it looks set to continue on an upward trajectory. Experts are optimistic about its future performance and advantages for users.
How does cryptocurrency mining work?
Crypto mining involves verifying transactions on a blockchain network or adding them to a public ledger, which requires people to sit and mine as an essential component. Super powerful computers are used to solve mathematical problems that add new transactions to the blockchains after securing the network. Miners are then granted cryptocurrency in exchange for their work.
What is the Pi Network?
The Pi Network is a mobile-first application, meaning that it’s optimized specifically for mobile devices (smartphones or tablets). This is one of the aspects that make it user-friendly and attractive to miners lacking experience or confidence.
Pi Network also encourages peer-to-peer (P2P) trading through its app, meaning individuals can exchange cryptocurrencies directly instead of through decentralized exchanges. Pi Network deals in Pi coins, which miners are rewarded with for executing basic tasks from their mobile devices.
The Pi Network, which was launched in 2019 by Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, is in its development Phase 3, which developers are calling the enclosed mainnet. The full mainnet launch was delayed until the end of 2024, but when it launches, miners will be able to mine Pi with ease and interact with the network blockchain from their mobile devices.
The Pi coins and network have three interesting features. The coins have a limited supply in circulation at any one time, which is different from Bitcoin. Also, no maximum supply has been set yet. The coins haven’t been listed on exchange platforms yet because the mainnet is still closed, so they can’t be traded or shared out the network. In theory, the Pi coins have a value of zero until the mainnet launches, but it’s expected that their value will be around $33 to $40, reaching as high as $163.46 in 2025.
The risks and benefits of cryptocurrency mining
There are a number of aspects of cryptocurrency mining that make it a less-than-ideal in comparison to other forms of trading and investing. It uses a lot of energy in the form of computational power, which has a negative environmental impact. The market is volatile because prices can fluctuate drastically and frequently, so crypto mining is risky. Cryptocurrency mining is also more open to illegal financial activity than traditional forms of trading.
On the plus side, there is a great potential for profit, and mining helps to ensure the security and integrity of the network, which helps to prevent fraud and maintain a distributed ledger. Mining is also vital to maintaining and growing the blockchain system and decentralizing digital currencies. Cryptocurrency mining allows individuals to have control over their own money.